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Where California goes, so goes the nation eventually. This time,
we may be heading toward paid family leave.

In September, Governor Gray Davis signed legislation making
California the first state to require paid leave for employees who
want to take care of an ill relative, newborn or newly adopted
child. The program-funded by payroll deductions and administered
through the state's disability insurance program-allows
employees to take up to six weeks at half salary after using two
weeks of vacation, and goes into effect January 2004. At least 27
other states-including Massachusetts, New Jersey and New York-are
also considering legislation.

Proponents point toward cost savings for employers. A report by
UC Berkeley economists estimates California employers could save
$89 million a year in turnover costs, and the average cost per
employee will be $2.10 per month. Paid family leave is a win-win
for employers and employees, says Netsy Firestein, executive
director of the Labor Project for Working Families, a Berkeley
organization working to pass family leave legislation. Employees
will bear the burden of applying through the state and getting a
doctor's certification, and the law doesn't require small
employers to keep a job open, meaning employees won't take the
leave lightly.

Critics fear small employers won't have the flexibility to
cover for employees on leave. Plus, it's a regressive tax that
will encourage employees to ask for raises so their pay isn't
affected, says Scott J. Witlin, a partner at Proskauer Rose in Los
Angeles. "Employers will have to make up that cost," he
says.

If a paid leave law passes in your state, you'll have to
keep close track of time accrued and how much has been used.
"Tracking can be a nightmare," says Mary Topliff, an
employment law attorney in San Francisco. "It'll be
interesting to see how this flies."